The value of contracts signed in August for projects ranging from homes to schools and factories in Alabama's largest metro area dropped 29 percent compared to the previous year, according to McGraw-Hill Construction, a New York firm that compiles data from around the nation.

Contracts are seen as an indicator of future activity.

Residential construction contracts totaled $53 million last month, a decline of 56 percent from a year ago, the firm said. Contracts for non-residential work -- including commercial buildings, factories, churches, schools and hotels -- rose 3 percent to $101.6 million.

Across Alabama, residential construction contracts dropped 27 percent in August to $276 million, McGraw-Hill said. Non-residential contracts, however, took a leap to $3.9 billion, from $308.3 million in the previous year. 
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